Abstract: “This article aims at analyzing the mechanism by which budget misallocation in the Indonesian government bureaucratic system occurs. This study is conducted on the Yogyakarta Special Region government. The fraud triangle analysis is used as the tool of analysis in assessing multiple government projects in 2013. The results of this study indicate the potential systematic misuse of government fund which involves bureaucrats and private sector as good and service suppliers. The misconducts occur throughout the stages of planning, auction, execution, and reporting of the government projects. This suggests the existence of the so-called “opportunistic bureaucracy” that could potentially lead to corruption in the Indonesian government especially in the regional government.”

Keywords: Bureaucracy, executive, budget, corruption, government